Slide 1: Investor Presentation Q2 2014 Results
INVESTOR PRESENTATION Q2 2014 RESULTS July 24, 2014 ASM proprietary information © 2014 ASM
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: All matters discussed in this business and strategy update, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that co
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS › ALD is a key growth market ALD market expected to outperform the broader equipment market ASMI has leadership positions in ALD and PEALD › Strong revenue performance ASMI grew revenue by 22% in 2013 and by 43% y-o-y in the first half of 2014 Outperforming the overall
Slide 4: Q2 2014 Key Results
Q2 2014 KEY RESULTS EUR million Q2 2013 Q1 2014 Q2 2014 New orders 128.4 172.1 119.5 Net sales 128.6 150.7 148.4 Gross profit margin % 39.3% 43.7% 42.3% Operating results 16.2 32.5 27.4 Result from investments (excl. amortization and 9.2 5.7 15.8 fair value purchase price allocation) Remeasurement g
Slide 5: Semiconductor Equipment Market
SEMICONDUCTOR EQUIPMENT MARKET › ASM focuses on deposition Equipment market segments (US$) equipment › ASM is the market leader in ALD Assembly Test 3.4bn Lithography 3.3bn 7.8bn and PEALD Other Wafer Processes › Positions in Epitaxy, PECVD 3.9bn and Vertical Furnaces Etch and Process Clean Diagnost
Slide 6: Equipment Market Outlook
EQUIPMENT MARKET OUTLOOK › Gartner forecasts a double digit Capital equipment spending market increase for 2014, front US$bn end loaded in the first half year 60 › Driven by investment in leading +11% 50 +11% -16% +15% -6% edge equipment 40 -12% 30 20 10 0 2011 2012 2013 2014 2015 2016 Gartner, July
Slide 7: Mobility the Key End Market Driver
MOBILITY THE KEY END MARKET DRIVER SEMICONDUCTOR SALES BY KEY APPLICATION (USD billion) 160 Premium Smartphone 140 Utility/Basic Smartphone 120 Traditional Mobile Phone 100 Media Tablet, Utility/Basic 80 Media Tablet, Premium 60 40 PC, Ultramobile 20 PC, Notebook 0 PC, Desk-based 2011 2012 2013 2014
Slide 8: Wafer Fab Equipment Spending by Node
WAFER FAB EQUIPMENT SPENDING BY NODE 7 nm and below Wafer Fab Equipment by Node 45.0 10 nm 14 nm 40.0 22 nm 32 nm 35.0 45 nm 65nm & above 30.0 Share of 22nm and 14nm 25.0 of total Equipment spending increasing in $B 20.0 2014-2015 15.0 10.0 5.0 0.0 2012 2013 2014 2015 2016 2017 2018 Gartner, April 2
Slide 9: ALD Is an Enabling Technology
ALD IS AN ENABLING TECHNOLOGY › ALD technology is a key enabler of Moore’s Law Strengths of Atomic Layer Deposition: high-precision deposition of smooth and conformal ultra-thin films, even on high aspect ratio structures Device scaling, new materials and 3D architectures increases demand for AL
Slide 10: Competitive Advantages
COMPETITIVE ADVANTAGES › Focused player, differentiated technologies › Track record of innovation › Global network, streamlined operations › Leadership in ALD Developing ALD technology since 1999 Largest player in both single wafer ALD and PEALD › Close cooperation with the leading IC manufactur
Slide 11: Customer Concentration
CUSTOMER CONCENTRATION › Wider adoption number of ASMI revenue top capex customers 100% › Diversification of customer 75% base from Logic to Memory and Foundries 50% › Weight of Asia growing 25% 0% 2009 2010 2011 2012 2013 Top 3 Nr 4-10 Rest Growing share of wallet with top clients July 24, 2014 | A
Slide 12: Highlights
HIGHLIGHTS › Strong momentum ALD and PEALD ALD and PEALD further established as mainstream enabling technologies Bookings and revenues in the first half of 2014 driven by ALD and PEALD › Solid results in Q2 Revenue only 2% below the record level in Q1 Gross margin at a solid level of 42.3%,
Slide 13: ASMPT Results
ASMPT RESULTS › As of 15 March 2013, our 40% share of ASMPT net profits is included in ‘result from investments’ › PPA regular amortization projected at € 22m for full year 2014 Q2 2013 Q1 2014 Q2 2014 Sales ASMPT (HK$m) 2,850 2,493 3,438 Net profit ASMPT (EURm, 100% based) 23.0 14.3 39.5 Net profit
Slide 14: Financial Overview
FINANCIAL OVERVIEW July 24, 2014 | ASM proprietary information | 14
Slide 15: Q2 2014 Highlights
Q2 2014 HIGHLIGHTS › Revenues down 2% q-o-q and up 15% y-o-y › Bookings down 31% q-o-q and down 7% y-o-y › Book-to-bill ratio of 0.8 › Q2 backlog of € 109m, down from € 136m in Q1 2014 › EBIT margin of 18.5% compared to 21.6% in Q1 2014 and 12.6% in Q2 2013 › Cash flow from operations of € 18m in Q2
Slide 16: Financial Outlook
FINANCIAL OUTLOOK Based upon the current backlog and our current visibility: For Q3 2014 we expect a strong double digit sales decrease compared to Q2, on a currency comparable basis. The Q3 2014 order intake is expected to be around the same level as Q2, on a currency comparable basis. July 24, 201
Slide 17: Net Earnings
NET EARNINGS Q2 2014 vs Q2 2014 vs EUR million Q2 2013 Q1 2014 Q2 2014 Q1 2014 Q2 2013 New orders 128.4 172.1 119.5 (31)% (7)% Backlog 117.0 135.9 109.1 (20)% (7)% Book-to-bill 1.0 1.1 0.8 Net sales 128.6 150.7 148.4 (2)% 15 % Gross profit 50.5 65.9 62.8 (5)% 24 % Gross profit margin % 39.3% 43.7% 4
Slide 18: Cash Flow
CASH FLOW EUR million Q2 2013 Q1 2014 Q2 2014 Net earnings (23.4) 27.1 34.6 Depreciation and amortization 5.1 5.1 5.0 PPA amortization and adjustments 34.0 2.0 5.5 Result from investments - (5.7) (15.8) Other adjustments 8.1 3.6 3.5 Change in working capital (18.1) 27.1 (14.5) Net cash from operatin
Slide 19: Balance Sheet
BALANCE SHEET Dec 31, 2013 Jun 30, 2014 EUR million Cash and cash equivalents 312 368 Accounts receivable 83 75 Inventories 105 101 Other current assets 18 19 Investments and associates 944 967 Property, plant and equipment 57 61 Other non-current assets 33 38 Total Assets 1,551 1,629 Accounts payab
Slide 20: Working Capital
WORKING CAPITAL EUR million Days 160 140 140 130 120 120 110 100 100 80 90 80 60 70 40 60 20 50 0 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 11 12 13 14 11 12 13 14 Working capital Quarterly sales Days of working capital July 24, 2014 | ASM proprietary inf
Slide 21: Bookings and Backlog
BOOKINGS AND BACKLOG EUR million 200 180 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 09 10 11 12 13 14 Bookings Backlog July 24, 2014 | ASM proprietary information | 21
Slide 22: Historical Development
HISTORICAL DEVELOPMENT EUR million 160 40 140 30 120 20 100 10 80 - 60 10- 40 20- 20 30- 0 40- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 09 10 11 12 13 14 Net Sales (lhs) EBIT (rhs) July 24, 2014 | ASM proprietary information | 22
Slide 23: July 24, 2014 | ASM proprietary information
July 24, 2014 | ASM proprietary information | 23